U.S. stocks extend record-setting week on Iran peace-deal hopes and earnings

U.S. stocks extend a record-setting week as Iran peace-deal hopes and earnings drive trading

U.S. stocks are trading higher, with the S&P 500, Dow and Nasdaq all in the green as the market builds on a strong start to the week. Reuters said the Dow closed at a record on Wednesday after signs of progress toward a peace deal with Iran, while the Nasdaq fell on Thursday as SpaceX and AMD slipped after earnings.

What is driving the move

Reuters said investors were digesting the latest round of corporate earnings while watching for progress on a peace deal between the U.S. and Iran. The same report said the rally earlier in the week was supported by easing geopolitical risk and a broad risk-on tone, with the S&P 500 and Nasdaq both adding to their gains before Thursday’s pullback.

MarketWatch’s Aug. 3 live coverage also described the week as a strong one for U.S. equities, noting that the Dow notched a record close while the S&P 500 and Nasdaq each logged a third straight day of gains as oil prices and Treasury yields fell on signs of U.S.-Iran de-escalation.

Why this stands out

Among the themes in the recent tape, the combination of a geopolitical shift and record index levels is the most market-moving development in the sources provided. It is also different from the recent earnings-driven stories already covered on Sandisk, Western Digital, Micron, Tesla, Amazon and Microsoft.

What to watch

• Whether progress on the U.S.-Iran peace talks continues to support risk appetite and keep pressure on oil and volatility.
• Whether the Dow can hold its record territory and whether the S&P 500’s strength broadens beyond the current advance.
• How the next round of earnings affects momentum in individual stocks after the recent AMD and SpaceX-related pullback in the Nasdaq.